Question: Using the following information to answer the next two questions Return for FastRunner company Return for Issuing Company Year 1 14.00% 11.00% Year 2 9.55%

Using the following information to answer the next two questions

Return for FastRunner company

Return for Issuing

Company

Year 1

14.00%

11.00%

Year 2

9.55%

4.50%

Year 3

-6.50%

-8.28%

Year 4

10.20%

2.15%

Mean

Standard Deviation

What is the maximum loss (Mean - 1.2816?) for stock of Issuing at the 90% c.f.?

-6.5478%

6.5478%

-7.7136%

11.8985%

What is the maximum loss (Mean - 2.3262?) for stock of FastRunner at the 99% c.f.?

-11.4985%

11.4985%

10.2507%

-10.2507%*

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